how much can you expect a bank to negotiate off the asking price in a foreclosure situation. Say the price is

Asked by Catherine Sullivan, 32963 Sun Jun 15, 2008

299,000 what should i bid?

Help the community by answering this question:

+ web reference
Web reference:


Mark LeMenag…, Agent, Lake Nona Orlando, FL
Wed Aug 25, 2010
In my experience it depends entirely on how long it has been on the market. During the first 30 days don't expect them to move more than a few thousand off their price. Once they start lowering the price (typically every 30 days just like a Dutch auction), you will find them more willing to negotiate. After 90 days, the asset manager will be getting desperate to move it and then you will be able to negotiate for real. My advice would be to offer them a "facing saving" deal in which you keep the price relatively high and ask for a ton of concessions and repairs/upgrades.

Good luck, Mark
2 votes
Joyce Miller, Agent, Bozeman, MT
Sun Jun 15, 2008
Dear Home buyer in 32963, Sounds like all the professionals including myself agree you should have a good REALTOR to do an analysis for you to see that you don't overpay. Is your market declining? If so, be very careful, you don't want to catch a falling knife!
Right now banks and mortgage companies are willing to negotiate with buyers, they do not want to have these properties on their books and would prefer to get them sold. Be sure you have your financing in order so you can show them you'd be ready to close the sale! in a prompt time frame, there is no set percentage that goes across the board. Be sure your not dealing with a "Short Sale" as there may be some hidden language, this could easily be explained by your REALTOR. There are plenty of good buys on the market with agents across the country, not foreclosures, talk to your agent and if you don't have one, don't hesitate to go to my web-site http://, and contact me, I have a great network of very qualified professionals across the country, I'd be happy to send you to visit with one in your area. Just a general answer to your question of, the price is $299,000 what should my offer be? I would not be afraid to offer in the neighborhood of $250,000 -$270,000 to get the ball on the court, The answer is always no, unitl you ask the question! really depends on your particular market conditions, Again Ask your REALTOR, Joyce Miller Broker/Owner of Joyce Miller Montana Realty Bozeman, Montana
1 vote
Tom Stewart, Agent, Atlantic Beach, FL
Wed Aug 25, 2010
My experience with foreclosures is that banks generally price them about 10% below current market value. They then get multiple offers and the property ends up closing at 92% to 96% of fair market value. I have found more equity in underpriced homes where the owner has it paid off or has owned the property many years. Foreclosures are not always the best bargain around.
0 votes
Jim Johnson, , 78233
Sun Jun 15, 2008
You can't negotiate. Buying foreclosures is basically a bidding process, much like a silent auction. You will need to make your offer based on an opinion of value. The best opinion of value will be one based on a CMA. The best CMA will be done by a REALTOR member of the MLS. Such an agent will also be able to advise you about many another potential pitfalls which you may not otherwise be aware of.

What's truly astounding about this is that having agency representation usually cost buyers nothing.
0 votes
Jeff Launiere…, , Tampa, FL
Sun Jun 15, 2008
You should get a comparative market analysis done by a good Realtor to help you decide on a good offer. The problem is the lender usually does not tell the listing agent what price to list at or what they may accept. Normally the listing agent starts at a price based on a CMA. The price then is reduced with market shifts or if few showings or no offers occur.

I have seen where the offer is actually higher than the asking price and the offer still gets rejected by the lender.

The lender will do a Broker Price Opinion (BPO) when they get an offer. The price the lender will accept is based on the BPO not the asking price. Some say the discount is 82% -85% of the BPO, but that may or may not be true. It really depends on the lender. The problem can be that the BPO's can become outdated quickly or often the person doing the BPO may not do an accurate BPO in the first place. Even after the BPO is done, the lender often does not even let the listing agent know what the BPO came in at. And sometimes a lender will tell us that they will not accept an offer below a certain price, but they very well may when they actually get the lower offer.

It is really best to get a great Realtor and let them give you guidance in what a good offer would be. Short sales require lots of patience, as you often do not get an answer for 4 - 6 weeks or longer. If they reject the offer then you go through the same process all over again. There are some great deals, but they are not always easy. Some lenders are great to work with while others are next to impossible. We now even have short sales where they say in the listing that the lender will take up to three months to provide an answer.

Now if you are talking about a bank owned (REO) those are much simpler. On these the bank regularly changes the asking price until it is sold. Many are now setting very good prices that attract lots of Realtor and buyer activity. They often will get so much activity then when they get their first offer, the listing agent will send a message to all Realtors who have shown the home and say that the lender will accept the highest offer received by so and so date. We are getting multiple offers on these and they are often selling for more than the asking price.
0 votes
Claudia and…, Agent, Florida, FL
Sun Jun 15, 2008
There is no set persentage or amount you can expect. What you should do is find a Realtor who is serious about evaluating the data of your market. That Realtor will be able to break the home down by market area and condition of the home and make a solid recomendation for an offer price. Only through a detailed evaluation of market data can any offer be validated. You will know you are dealing with a competent agent when he or she can show you all the market date in your area and draw conclusions for the prospetive home from them.

Be aware that the banks ofen times use Broker Price Opinions to determine the asking price or acceptance price for the home. It is not unusual for the BPO to be out of wack with current asking prices in your community. This will depend on how quickly prices are droping in your area. -A great question to ask your agent.

For instance, I am a listing specialist in zip code 33179 in Miami. I make it a regular practice to update all my sellers on the market conditions relative to their homes each week. I have been amazed how often I can list a property on Wednesday at an aggessive price (lowest in the market) and come back on Monday only to find four or five properties have moved into lower postions than my listing. In my market we seem to have a follow the leader mentality amoungst some agents and sellers. This makes it difficult to determine what the lender in a foreclosure is willing to accept.

Knowing this. I submit market condition reports along with all my short sale and foreclosure offers in the hopes that the lender will consider the data (current asking prices and sold prices for similar properties in the are) when deciding to accept my client's offer.
0 votes
Search Advice
Ask our community a question
Home Buying in Saint Augustine Zip Codes

Email me when…

Learn more